By Kofi AHOVI
Ghana’s trade position improved considerably in the first quarter of this year in part on account of petroleum exports according to provisional data from Bank of Ghana’s (BoG) Monitory Policy Committee report.
The merchandise trade deficit of US$584.2 million for the first quarter of 2010 significantly narrowed to US$248.6 million in the first quarter of 2011, resulting in a lower current account deficit of US$220.2 million compared to the deficit of US$565.8 million in 2010.
Total merchandise exports, estimated at US$3 billion, enjoyed a growth of 61.7% year-on-year and was boosted mainly by petroleum exports, higher commodity prices and larger export volumes.
Export earnings in the first quarter of 2010 were US$1.9 billion. Export receipts of cocoa beans and products amounted to US$859.4 million compared with US$682.5 million for 2010. The export value of gold was US$1.2 billion, compared to US$787 million in 2010, while exports of crude oil were estimated at US$484.2 million for the first quarter of 2011.
Total merchandise imports amounted to US$3.3 billion during the first three months of the year, compared with US$2.5 billion for the same period in 2010, an increase of 32%. Non-oil imports were US$2.7 billion compared with US$2.0 billion in 2010. Oil imports were US$614.4 million compared to US$493.5 million for 2010. This increase in the oil bill was driven mainly by higher prices.
Private remittances during the first quarter of 2011 amounted to US$673.8 million compared to US$449.9 million during the same period of 2010.
However, the capital and financial account registered a surplus of US$229.6 million compared to a surplus of US$953.5 million for the first three months 2010. The decline in the surplus on the capital and financial account was mainly a result of net lower portfolio inflows.
The overall Balance of Payments therefore resulted in a deficit of $154.2 million compared with a surplus of $152.0 million in 2010.
As a result of the deterioration in the Balance of Payments, the Gross International Reserves of the Bank of Ghana declined from US$4.7 billion at the end of 2010 to $4.5 billion by March 2011;
But by at the end of April 2011, Gross International Reserves had improved to US$4.9 billion, representing 3.8 months of import cover, mainly as a result of portfolio inflows associated with the issue of a government treasury 3-year bond.
The reserves figure, however, excludes an amount of US$112.0 million which accrued from the sale of the first lifting of crude oil, currently in an interest-bearing escrow account belonging to the Bank of Ghana, awaiting the conclusion of the ongoing discussions on its distribution.
Developments in the local foreign exchange market show that the cedi cumulatively depreciated by 1.6%, against the US dollar, in nominal terms during the first four months of 2011. This compares with an appreciation of 0.8% for the same period in 2010.
The relatively poor performance of the cedi early this year was mainly due to a sharp depreciation at the end of January, brought about by speculative currency trading when government failed to issue three year treasury bonds against expectations at that time. The bonds, although cedi denominated are mainly, bought up by foreign investors thereby, generating a foreign exchange inflow when the bond issue delayed, foreign currency traders worried over possible forex supply shortages but when the issue was done a few weeks later, confidence in the cedi was restored.
In trade weighted terms, a nominal effective depreciation of 2.3% was recorded by the end of March 2011. In real trade-weighted terms, the cedi depreciated by 1.9%.
Ghana’s trade position improved considerably in the first quarter of this year in part on account of petroleum exports according to provisional data from Bank of Ghana’s (BoG) Monitory Policy Committee report.
The merchandise trade deficit of US$584.2 million for the first quarter of 2010 significantly narrowed to US$248.6 million in the first quarter of 2011, resulting in a lower current account deficit of US$220.2 million compared to the deficit of US$565.8 million in 2010.
Total merchandise exports, estimated at US$3 billion, enjoyed a growth of 61.7% year-on-year and was boosted mainly by petroleum exports, higher commodity prices and larger export volumes.
Export earnings in the first quarter of 2010 were US$1.9 billion. Export receipts of cocoa beans and products amounted to US$859.4 million compared with US$682.5 million for 2010. The export value of gold was US$1.2 billion, compared to US$787 million in 2010, while exports of crude oil were estimated at US$484.2 million for the first quarter of 2011.
Total merchandise imports amounted to US$3.3 billion during the first three months of the year, compared with US$2.5 billion for the same period in 2010, an increase of 32%. Non-oil imports were US$2.7 billion compared with US$2.0 billion in 2010. Oil imports were US$614.4 million compared to US$493.5 million for 2010. This increase in the oil bill was driven mainly by higher prices.
Private remittances during the first quarter of 2011 amounted to US$673.8 million compared to US$449.9 million during the same period of 2010.
However, the capital and financial account registered a surplus of US$229.6 million compared to a surplus of US$953.5 million for the first three months 2010. The decline in the surplus on the capital and financial account was mainly a result of net lower portfolio inflows.
The overall Balance of Payments therefore resulted in a deficit of $154.2 million compared with a surplus of $152.0 million in 2010.
As a result of the deterioration in the Balance of Payments, the Gross International Reserves of the Bank of Ghana declined from US$4.7 billion at the end of 2010 to $4.5 billion by March 2011;
But by at the end of April 2011, Gross International Reserves had improved to US$4.9 billion, representing 3.8 months of import cover, mainly as a result of portfolio inflows associated with the issue of a government treasury 3-year bond.
The reserves figure, however, excludes an amount of US$112.0 million which accrued from the sale of the first lifting of crude oil, currently in an interest-bearing escrow account belonging to the Bank of Ghana, awaiting the conclusion of the ongoing discussions on its distribution.
Developments in the local foreign exchange market show that the cedi cumulatively depreciated by 1.6%, against the US dollar, in nominal terms during the first four months of 2011. This compares with an appreciation of 0.8% for the same period in 2010.
The relatively poor performance of the cedi early this year was mainly due to a sharp depreciation at the end of January, brought about by speculative currency trading when government failed to issue three year treasury bonds against expectations at that time. The bonds, although cedi denominated are mainly, bought up by foreign investors thereby, generating a foreign exchange inflow when the bond issue delayed, foreign currency traders worried over possible forex supply shortages but when the issue was done a few weeks later, confidence in the cedi was restored.
In trade weighted terms, a nominal effective depreciation of 2.3% was recorded by the end of March 2011. In real trade-weighted terms, the cedi depreciated by 1.9%.
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